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Cullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $21,200, direct labor $12,720, and manufacturing overhead $16,960. As of January 1, Job 49 had been completed at a cost of $95,400 and was part of finished goods inventory. There was a $15,900 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $129,320 and $167,480, respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $95,400 on account.
2.		Incurred factory labor costs of $74,200.
3.		Incurred manufacturing overhead costs as follows: depreciation expense on equipment $12,720; and various other manufacturing overhead costs on account $16,960.
4.		Assigned direct materials and direct labor to jobs as follows.
		Job No. Direct Materials Direct Labor 50 $10,600 $5,300 51 41,340 26,500 52 31,800 21,200
5.		Assigned indirect materials of $18,020 and indirect labor of $21,200.

(a)

Calculate the predetermined overhead rate for 2022, assuming Cullumber Company estimates total manufacturing overhead costs of $890,400, direct labor costs of $742,000, and direct labor hours of 21,200 for the year.

Predetermined overhead rate

enter the predetermined overhead rate in percentages

%

Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)	enter an account title to record the purchase of raw materials	enter a debit amount	enter a credit amount
	enter an account title to record the purchase of raw materials	enter a debit amount	enter a credit amount
(2)	enter an account title to record the factory labor costs incurred	enter a debit amount	enter a credit amount
	enter an account title to record the factory labor costs incurred	enter a debit amount	enter a credit amount
(3)	enter an account title to record the manufacturing overhead costs incurred	enter a debit amount	enter a credit amount
	enter an account title to record the manufacturing overhead costs incurred	enter a debit amount	enter a credit amount
	enter an account title to record the manufacturing overhead costs incurred	enter a debit amount	enter a credit amount

Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)	enter an account title to record the assignment of raw materials	enter a debit amount	enter a credit amount
	enter an account title to record the assignment of raw materials	enter a debit amount	enter a credit amount
	enter an account title to record the assignment of raw materials	enter a debit amount	enter a credit amount
(2)	enter an account title to record the assignment of factory labor	enter a debit amount	enter a credit amount
	enter an account title to record the assignment of factory labor	enter a debit amount	enter a credit amount
	enter an account title to record the assignment of factory labor	enter a debit amount	enter a credit amount
(3)	enter an account title to record the assignment of manufacturing overhead costs to production	enter a debit amount	enter a credit amount
	enter an account title to record the assignment of manufacturing overhead costs to production	enter a debit amount	enter a credit amount

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary.

Job No. 50
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Beg.		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Jan.		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount
Cost of completed job
Direct materials						$enter a dollar amount
Direct labor						enter a dollar amount
Manufacturing overhead						enter a dollar amount
Total cost						$enter a total amount

Job No. 51
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Jan.		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount
Cost of completed job
Direct materials						$enter a dollar amount
Direct labor						enter a dollar amount
Manufacturing overhead						enter a dollar amount
Total cost						$enter a total amount

Job No. 52
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Jan.		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

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